Housing and mortgage trade groups are supporting new legislation aimed at regulating 'trigger leads,' which refer to unsolicited credit solicitations triggered when consumers apply for loans. These leads are sold to creditors by credit reporting agencies without consumer consent, creating privacy concerns. The proposed bill seeks to limit the use of trigger leads and require consumer consent before sharing their information. Following initial failure in Congress, the bill was reintroduced with bipartisan support, reflecting ongoing concern for consumer rights in lending practices.
The letter stresses that the burden is on the consumer to opt out of trigger leads, allowing CRAs to sell individual information without consumer approval.
Trigger leads occur when a consumer applies for a mortgage, prompting credit reporting agencies to sell their information to prospective creditors without consent.
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